Financial Innovations and Blockchain Applications: New Digital Paradigms in Global Cybersociety

Abstract

Cryptocurrencies—digital assets—are discussed from the viewpoint of the medium of exchange and the store of value with a focus on Bitcoin. The issue of trust towards the unit of accounts is viewed in the perspective of historical events including fiat currency reforms in the past all over the world. It is argued that a major test of the present global financial system and its emerging new technology alternatives has not occurred yet. The notion of intrinsic value of currency is strongly attached to the stability of the social and economic system, which landscape will be probably drastically altered in the next few decades due to the rise of artificial intelligence. The chapters in this book which are focusing on the current aspects of financial innovations also point out the possible directions and dilemmas the future may bring us.